Cannabis Security - Keeping the Stash Safe - PowerPoint PPT Presentation

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Cannabis Security - Keeping the Stash Safe

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The problem is that in Canada even though cannabis has been legal since 2017 the major banks are still reticent to do business with the cannabis industry. This is despite that in Canada for example which has over 100 licensed cannabis producers and some start-up companies are considered to be unicorns – business that are worth $1Billion dollars or more. Table of Contents State and National Security Regulations. Retail Outlets. Transportation. Security on the Farm. Greenhouse and Indoor Farms. Why all these Security Regulations? What can the Professional Cannabis Security Companies do to Help? Top Tips for Choosing a Cannabis Security Company. Conclusion. – PowerPoint PPT presentation

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Title: Cannabis Security - Keeping the Stash Safe


1
Cannabis Security - Keeping the Stash Safe
2
Introduction
  • Cannabis has become big business over the last
    decade as it has transformed from being an
    illegal drug to an acceptable medical remedy and
    even in some Countries such as Uruguay and Canada
    to full legal status. In these countries and in
    several states in the USA cannabis has not just
    been de-criminalized but made legal. The result
    of this is that cannabis can now be openly grown,
    distributed, sold and of course taxed. This has
    meant huge tax windfalls for the governments and
    states that have made cannabis either legal for
    medical use or for recreational use. Indeed, some
    industry observers believe that the industry in
    continental North America for example may top
    31.4 billion in annual sales by 2021. This is
    serious big money but it doesnt come without
    equally seriously big issues.

3
  • The problem is that in Canada even though
    cannabis has been legal since 2017 the major
    banks are still reticent to do business with the
    cannabis industry. This is despite that in Canada
    for example which has over 100 licensed cannabis
    producers and some start-up companies are
    considered to be unicorns business that are
    worth 1Billion dollars or more. These successful
    businesses still find it hard to enter the
    international banking system.In the USA things
    are even worse as although 29 states have
    legalized cannabis for medical use and 9 states
    have legalized cannabis for recreational use it
    is still under Federal law classed as being
    illegal. The problem is that the flourishing
    cannabis industry is finding banking and
    financial services are out-with their reach. This
    is because banks cannot take their money nor do
    business with them under federal law - although
    they must still pay state and federal taxes.
    Additionally, the large security companies cannot
    transport their product or their cash, again due
    to Federal law restrictions, which has left these
    cash-rich businesses hugely attractive to
    criminal. This in turn has created a flourishing
    cannabis security industry that aims to ensure
    companies are secure and compliant with their
    state or countries security requirements.

4
Table of Contents
  • State and National Security Regulations.
  • Retail Outlets.
  • Transportation.
  • Security on the Farm.
  • Greenhouse and Indoor Farms.
  • Why all these Security Regulations?
  • What can the Professional Cannabis Security
    Companies do to Help?
  • Top Tips for Choosing a Cannabis Security
    Company.
  • Conclusion.

5
State and National Security Regulations
  • The introduction of legislation that changed
    cannabis growing, production, distribution and
    resale from being a criminal offense to a
    legitimate industry did not come without
    stringent state or national regulations. Indeed
    in the US regulators have from the outset had
    strict security regulations in place although
    they differ from state to state.

6
Retail Outlets
  • Most of the security regulations are common sense
    practices that any cash based business with
    highly resalable goods with a high street value
    would voluntarily put in place. For example,
    cannabis retail outlets need to be protected by
    security cameras in much the same way as high
    street banks, jewelers or pawn shops. However in
    the US state laws determine the type of security
    cameras deployed as well as the time that video
    must be retained some are 30 days but some states
    demand a retention time off one year. In this
    case the need for HD cameras covering every exit
    and entrance and the storage of the video streams
    is a significant burden as now the cash, cannabis
    and the VDRs need to be secured.

7
Transportation
  • A serious issue that small startups have in the
    cannabis industry is in securely transporting
    their cash and product as both are magnates for
    criminals. Armed robbers will make short work of
    an unprotected personal vehicle but the problem
    is that many security companies cannot transport
    cannabis due to its Federal illegal status. This
    is not just in the US which is under direct
    Federal law but in many other countries companies
    that do work in the US are very wary of breaking
    Federal laws such as in banking and narcotics and
    hence their reluctance to participate in any
    activity that they deem to be dubious. Naturally
    being involved in the distributing of cannabis is
    high up on their lists of dubious activities.
    Again this reluctance for traditional security
    firms to support the burgeoning cannabis industry
    has sparked demand and interest from start-up
    security firms that are specializing in cannabis
    security and transportation.

8
Security on the Farm
  • In the states that have legalized the growing and
    cultivation of cannabis there will be strict
    regulation on how to secure the farm. This will
    certain need high double-layer perimeter fencing,
    sometimes triple layer with razor wire between
    the layers. Obviously on large farms this will be
    expensive but expected however what catches most
    farmers out is the number and locations required
    for surveillance cameras. Several states require
    cameras are fitted that cover an area of 20
    meters both inside and outside the perimeter
    fencing. Some may require that these cameras are
    monitored 24/7 but most just insist that the
    video is retained and stored securely for
    anything from 30 days to 1 year. Obviously
    storing that amount of HD video from so many
    cameras covering say an 80 meter area of
    cultivation is going to be a problem. However, it
    not just security surveillance that is required
    as there will also need to be guards that patrol
    and protect the farm and react to any alerts from
    the surveillance cameras. This is where farms
    that can sustain all year continual cultivation
    and production benefit as they will typically be
    well manned with workers throughout the year.
    Unfortunately those that have climates unsuitable
    for year round production will need to secure
    their farms even during the non-productive times
    and that will require private security.

9
Greenhouse and Indoor Farms
  • Most security regulations that apply to
    greenhouse and other methods of indoor cannabis
    cultivation are again concerned primarily with
    camera surveillance and perimeter security.
    However most cannabis producers will be well
    aware of this and have security and access
    management systems already deployed. Nonetheless
    the regulations insist upon minimal levels of
    security that producers must comply with. For
    example cameras must be placed to capture all the
    indoor area and not have any blind spots due to
    machinery or other obstructions. Greenhouses must
    have clear views inside and outside again
    covering all the area with no obstructions. This
    means that the surrounding area must be kept
    clear of foliage or equipment and once again the
    video footage from all the cameras must be
    retained for a predetermined time. Once more
    these are basic security requirements that any
    sensible cannabis producer would already have in
    place to protect their crop and their business.

10
Why all these Security Regulations?
  • The problem is that with most start-ups across
    many industries there is a mad rush to profit.
    What this generally entails is that what capital
    is available is spent on the cash generating
    activities such as production and retail.
    Security is never ignored expect by the foolhardy
    but often is misdirected towards building a
    defensive fortress. This might make perfect sense
    to the cannabis producers especially if they have
    graduated from the times of illegal cultivation
    but it can build a buttress between the companys
    staff and the customer. What these businesses
    must remember is that too much or heavy handed
    security can be just as detrimental to profit as
    insufficient security. After all you dont want
    to be reflecting or instilling a sense of fear,
    paranoia and nervousness to your customers as
    that would drive most sensible customers away.

11
  • Another issue with the way some startup cannabis
    producers protect their business and product is
    through stealth, which is perhaps another
    hangover from the days of illicit trading.
    However this is never a good idea as travelling
    with large amounts of cash or cannabis in
    discrete family saloon makes you highly
    vulnerable to armed robbery. That is one of the
    reason that regulators insist on surveillance
    systems as both approaches to security typically
    fall into the heavy or stealth categories but
    both modes will insufficient from a law
    enforcement and governance perspective. This is
    because although the premises, which may be
    stealthy or bristling with defence, and the cash
    and product deemed by the owner to be secure. The
    problem remains that should there be a concerted
    effort to break into the premises. It would not
    matter whether the attack succeeds or not, from
    the police perspective there will be no forensic
    surveillance evidence.

12
  • Therefore regulators insist on not just camera
    surveillance, but the type of cameras installed
    (HD, IP) and the number of cameras, the placement
    and range of coverage as well as the retention
    period for the data. Some states have insisted on
    external surveillance similar to banks that
    covers the roads and alleys in the proximity to
    the companys premises. Indeed these types of
    surveillance systems might even need to be
    monitored. In which case it becomes clear that
    the new cannabis industry is likely to struggle
    in complying with their state regulations and
    perhaps call in the professionals to help them.

13
What can the Professional Cannabis Security
Companies do to Help?
  • As we have seen it is still the early days of the
    cannabis production and retail industry with most
    countries in the world still considering it to be
    illegal. However even in those countries that
    have fully legalized cannabis companies are
    finding traditional services such as banking and
    security out with their reach. Instead a new
    style of security-focused company has arisen to
    fill this void and provide the security expertise
    and consultation that many startups in the
    industry need. Many of the companies go much
    further than just providing security audits and
    profiling but offer security implementation
    services and even secure transportation for cash
    and products. Many will also provide on-premises
    security personnel or even bespoke security
    systems. There is in any emerging market a
    mixture of truly professional businesses as well
    as a fair share of cowboys and the cannabis
    security industry is no different. So what
    services should we look for in a reputable
    security firm?

14
Top Tips for Choosing a Cannabis Security Company
  • A good starting point is to pick a security firm
    that is both knowledgeable about regulatory
    compliance in the cannabis industry for your
    particular state and country and is also
    enthusiastic about working in the industry. To
    enable you to first succeed at this it is best to
    make sure that the companies being vetted do know
    about local specific regulatory requirements and
    have a vested interest in the cannabis industry.
  • Another good way to differentiate between
    companies is to evaluate the options that they
    provide you with. Consultation should not be just
    around security they must as a starting point
    first meet the local requirements for compliance.
    Similarly the solutions offered should be
    appropriate for your business and not a
    one-size-fit-all solution.
  • When considering security system proposals make
    sure that they will be fit for purpose and the
    company is going to meet all regulatory
    requirements. For example some states like
    Colorado and Washington State require that
    surveillance systems be monitored 24/7 by
    qualified and licensed staff. Sometimes security
    companies will just sell the system and leave the
    support and monitoring to you.
  • Finally make sure that the security company takes
    a holistic approach, some companies have evolved
    from physical security, which is their forte
    while others are primarily technologists with
    little interest in the physical side. Ideally you
    want a company that has specialists in both
    practices.

15
Conclusion
  • The cannabis industry is relatively new and
    potentially highly lucrative as well as risky so
    is naturally finding itself under stringent state
    or national regulations. As in many highly
    regulated industries compliance is a must and
    beyond the skills of the business. As a result
    many startup security companies have emerged to
    relieve cannabis companies from the burden of
    security and compliance. However, it is critical
    that you select a professional security firm that
    is both knowledgeable of the local cannabis
    industry and enthusiastic. One such company in
    Canada is Northern Source Security that provides
    both technical excellence through security
    consultations, audits, planning and
    implementations and also provides skilled and
    qualified manpower as well as training for
    security personnel. It is this competence in both
    the fields of technology through surveillance and
    early detection systems combined with their
    experience in close protection, security patrols
    and armed transportation services that make this
    companys all-round prospective standout.

16
The End
  • Find out more at - https//nfsecurity.ca/cannabis/
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